The rise of artificial intelligence (AI) has spurred a universe of advancements in business tech. Many companies now rely on AI to perform functions once impossible without manual interface. Machine learning algorithms analyze consumer data to pinpoint ad deployment, while virtual assistants and artificial service representatives both simplify and expand customer service. AI’s rippling innovations have prompted an industry-wide butterfly effect, enabling tech companies to dream up an endless assortment of methods for blending AI into their products, services, and everyday processes.
Financial tech (fintech) companies are beginning to realize AI’s potential to slash expenses and raise the bottom line, and investors have taken note. In 2016 alone, fintech investments increased around 10%, to a total of $23 billion.
That surge in funding has sent waves of AI-based disruption spiraling across the financial industry; banks and other traditional institutions are declining in popularity as AI-powered tools storm the market. For those curious as to how exactly AI is rewiring finance tech, the following are just a few effects of AI’s fusion into fintech practices and products.
Many companies have already fallen victim to a new generation of increasingly sophisticated cyber-threats. In response, financial firms are augmenting typical antivirus software by weaving AI into security processes. AI’s ability to learn organically allows security systems to intercept and counter malicious programming, as well as rectify fraud and identity theft.
Manually processing receipts and financial documents requires a massive time investment, and human error can result in costly mistakes. AI, on the other hand, can interpret patterns and quickly digest large portions of data. Where manual input is still required, AI can speed the process, and check financial information for duplicate transactions and other common mistakes.
Automated data crunching
AI automation generates expenditure reports rapidly and accurately; it uses knowledge of approval workflow patterning to streamline the process of tracking expenses. In fact, automated reporting can aid in everything from identifying reimbursement fraud to expediting budgeting processes, and much more.
Empowering businesses of all sizes
At one time, the potentially game-changing insights offered through AI’s sheer data processing capability only served large organizations capable of footing the bill. Today, however, AI’s price is no longer a barrier to its implementation; small startups and independent entrepreneurs alike rely on AI to enable the breakthroughs needed to boost productivity and multiply revenue.
Customer service reimagined
The dizzying volume of financial applications, tools and services available at our fingertips means that ease of customer interface often acts as a deciding factor in any fintech product’s adoption rate. AI chatbots enable companies to communicate important info with minimal resource expenditure; however, some fintech services also employ chatbots as customer-facing tools. Deployed in a self-service capacity, chatbots perform functions such as resolving customers’ account issues, or answering questions regarding personal information.
As competition in FinTech grows fierce, companies that harness the disruptive potential of AI to fine-tune internal process and surpass customer expectations will continue to earn massive success.